There’s a lot of doom and gloom in recruitment right now – and to be honest, it’s not all hype.

Agencies are laying off staff. A few are quietly vanishing. Two long-standing ones in my niche have gone under in the last month. One’s website disappeared overnight. The other’s still up, but I’ve heard clients are now stepping in to pay contractors directly – which is never a great sign. And let’s be clear: if the client’s already paid the agency, they’re not paying you again. They won’t - and legally, they don’t have to. So if your agency disappears with your cash, that’s it. You’re out of pocket.

I’ve been doing this job for 25+ years and run Bowers Partnership, a recruitment firm that works with Investment Managers, Wealth Managers, and Asset Owners. I’ve seen it all. Agencies rising, folding, getting bought, rebranding overnight. What’s never changed? The fact that getting paid on time isn’t a favour – it’s the bare minimum.

This isn’t about scaring people. It’s about being smart. Because if your agency folds and you’ve not done your homework, you’ll be the last to know – and the last to get paid. You do the work, and then boom – nothing hits your account.

We’re not imagining this downturn. The REC’s latest report shows both permanent and contract hiring are down again. Robert Walters just cut 77 more roles. And Greg Savage hit the nail on the head: “Agency recruitment is tough. Bloody tough.”

Why it matters
Because your agency is the middleman. If they’ve got money issues, even payments the client has made can vanish. You’re left chasing your tail – and your cash.

Watch out for dodgy payment terms
“Paid on paid” is the worst. It means: we’ll pay you if we get paid. That’s not how it should work. That’s their risk – not yours.

And those 45 or 60 day payment terms? No thank you. If you’re billing at the end of the month, you’re already two months deep before you see a penny. You’re basically financing someone else’s business.

Red flags in real life
Late payments. Excuses. Finance team always “on leave.” Recruiters ghosting you. Emails full of fluff. It’s not hard to spot – you just have to pay attention.

Check them out. Companies House. Endole. CreditSafe. A few clicks can save you a lot of grief.

Follow the money
One other thing to look out for is when a well-established agency suddenly takes on loans with little-known lenders. Nine times out of ten, it’s invoice finance - and not the good kind. These are what I call lenders of last resort. They’re expensive and only used when proper banks won’t touch the debt. That’s a massive red flag to me. It means they’ve probably been turned down elsewhere - and that puts your pay at risk.

What we do
At Bowers Partnership, we’re self-funded and we’ve never paid a contractor or supplier late. Ever. We pay on time or early. Because why wouldn’t we? You’ve done the work, you get paid. That’s simple.

Don’t work in a bubble
If you’re one of a group of contractors on a project – talk to each other. Are people getting paid on time? Any strange vibes? You’ll pick up on things faster together.

And if you’re not sure about an agency, ask for references. Get a name of someone they’re paying right now and ask how it’s going. If they hesitate or dodge the question, that tells you everything.

If things feel off…
Ask straight questions. A solid agency won’t mind. Quietly check in with the client too. And always have a backup plan. Don’t bet your income on one agency forever.

And keep everything. Timesheets, approvals, emails, deliverables. If it hits the fan, your paper trail is your best defence.

Personal Relationships Can Be Risky
I’ve seen plenty of clients stick with agencies because they “get on well” with the consultant or they’re offering bargain-basement rates. But when that agency collapses mid-contract, the project grinds to a halt, and no one’s laughing.

Same goes for contractors. Just because your recruiter’s nice doesn’t mean the agency isn’t on the brink. Don’t confuse a good chat for financial stability. Ask the hard questions. Get the facts.

Because when it goes wrong, no one’s refunding your time – or your invoices.